what or where do retired folks spend their money?
 

The Ca housing thread has me thinking. After retirement, what's the major expense? Sure, CA's (big cities) standard living is higher then most in the nation, but what or where do you spend that money that makes is not affordable to live in a large city like LA or parts of Nor or Socal? CraigT mentioned higher tax and fuel, but how much money are your folks spending? A new car every few years? You are no longer driving to work daily, so fuel cost goes way down. Lets say home is paid off, and kids are outta of college, so what else? Travel? Food is about the same every where. Restaurants are a little different, but I bet not by much. If you retired from Kansas or Dakota and move to LA for retirement, then sure, it isn't affordable because housing along will wipe you out.

I really think that with a paid off house and paid off cars I could live pretty cheaply in retirement. I suspect medical care would probably be the single largest expense, after that the usual stuff like insurance and property tax. At that point it's probably a function of what you want to do for hobbies and fun, in which case I'm pretty simple. My wife and I want to Porsche road trip around the USA. In between I'll continue to tinker with cars. Now I only need to save for another 20 years or so....ugh.

Pharmaceuticals, lawn care, and rising costs while on a fixed income.

I'm less than 3 years until retirement. I have been tracking my monthly expenses for the last 18 months - so I know where my money is going. I will be debt free and I don't own a home.

My biggest expenses: rent, food, medical insurance. As I track expenses, food cost surprised me the most.

I've been retired now for 10 years. My house and cars were paid off long before I retired, I quit working just before my 50th birthday.

Some cost that we didn't have before retireing

Medical, eye, and dental insurance. $18,000
Plane. $20,000
Country club. $9000
Trips, vacations. I'm guessing we spend at least $5,000 more. Since we moved to Florida the wife still takes several trips back to St. Louis to visit friends. We also host quite a few during the winter.

Other cost are about the same, we may eat out at a little better places than in the past.

The above cost, except for insurance, can of coarse be cut. And when we hit 65 that cost should also go down.

In 07 we were spending around $55k a year, now we spend around $110k a year. So my above numbers are pretty close.

Life is good. There will come a time where we probably won't be able to do the things we do now.

Well done dm, you are livin' large man, very well done! My largest expense is easily medical but I live with a disability so I have more needs. Fortunately I have simple desires.

depends..

badumpbump!!

Haha Cliff. That may very well come back to haunt you!

My wife still works, so that may cut down on our travel expenses. On the other hand, she really isn't much of a traveler and is more interested in art & such.

I was debt free at retirement and haven't accrued any since and have become very much against taking any on. We live pretty simple lives but enjoy our lives a lot. Because of that, our expenses are pretty much limited to property taxes, insurance, and miscellaneous types of fees and expenses like internet, etc. and the wife's income is just added income. One thing that has bearing on retirement spending is unexpected/unintended expenses in the form of medical, automotive, or whatever. Like I said before, it might be a good move to base plans on up to 25% in anticipation for those kinds of things.

Remodeling my home!

Our expenses in retirement are low, for now. We're debt free. We only gas up our cars every two or three weeks. Eating out once in a while. Our utilities are low since our house isn't too large and we upgraded our windows and insulated the house a few years ago.

I don't see any airplanes or expensive sports cars in my future, but both my wife and I are simple country folks who enjoy our 10 acre farm. We probably will do some traveling in our truck/camper. Insurance is the main thing that concerns me know, especially with my checkered health past.

great thread.

The standard of prop. taxes, health / ins. med., utilities, food but add community assoc. dues.

About that mo. assoc. dues -covers all outside lawn / landscape, road repair, sidewalks maint. (+ snow removal), stocked lake / ponds, golf course, pool, various sports courts, party - rec. facility, hobby work shop, personal gardening area - equipment, etc., etc.. (Have other family members still picking weeds and slaving to their property -consuming many hours per day.)

Slowly increasing but right now at $300 mo.. Downside is there are a few stickler rules and / or lets just say one gets bored with the same golf course, it becomes about spending it a country club.

For many, there comes a time in a brain reset but the challenge is balancing and healthy young spirit.

For example, its possible one realizes half the crap we own is a waste or useless to have. Sure it may appease just by having but its about deciding whether its your passion or is it about vanity? Tough to let go and downsize.

Cars, boats, hobbies (incl. more costly type), toys become about -been there, done that. Perhaps now if you've got the time, spend it in travel. Or say, the boat really hasn't been used much and its a chore to maintain, mooring cost, etc. so try an RV, or forget altogether and rather join the travelers club deals.

Though if you can afford it and feel can manage a larger residence, properties and keep a fleet of vehicles, remain fully active in your hobbies, thats pretty cool too. That likely keeps you thinking young -a real asset.



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New cars are still of interest but I've no desire like the younger years -the must have mentality.

Same for motorcycles, boats, snowmobiles. Rent or friends have them. Some of the motorsports have me re-thinking but its more about health and what if's. When older, less recovery or worse from accidents.

Just yesterday talked to a friend who's busted up from a dirt bike accident. Needs surgery, etc.. Same fellow lost a lower leg years ago from a road motorcycle wreck. I don't like the thoughts but surely has triggered them for some of these activities. In my younger years, would call it tough luck but that changes as one ages.

My wife is retired. Our house is paid for and all the cars are paid for. We have no debt except the month to month on a credit card but that gets paid off every month to a zero balance.

Just the property taxes, insurance on the three cars and the house is $600 per month. Add in the utilities and cable and internet and it is likely a grand per month just for the honor of living in our own house. I mow the yard because I need the exercise and I am a cheap bastage.

Amen on the "been there-done that" thing. The urge to acquire more has gone. Nothing I really want. Most purchases are replacement mode..."Stuff" becomes a hassle to take care of. At 73, I've become lazy..hate doing routine chores. So easy to get into "I'll do it tomorrow" mode.

Being debt free at retirement is the key. Money paid in interest is money thrown away. Still, expenses...taxes, insurance, new roof, new water heater, new furnace, other repairs. Have a ready emergency fund...I just keep $20K or so as a checkbook balance. Might as well, since the traditional secure investments like treasuries pay zilch.

At our current age, travel doesn't interest us. Airports are a pain. The physical systems get upset with the unusual diet, lack of sleep because of hotel noises, etc. Glad that we live smack dab in the middle of a popular tourist area. We can have fun days by leaving home in the morn and sleeping in our own bed at night. Mountains and the coast are both a couple of hours drive.

Cindy & I lead a boring and non eventful lifestyle. We like it that way...because "been there-done that" with the other stuff. Many of our peers haven't made it to this stage so we feel fortunate to have done so.

If you guys ever hear this coming from me, I need you to come over pronto and slap me around until I come to my senses.

PM me first and I'll come down to your place in Dana Point. Maybe we can get a two-for-one come to senses slapping.

I've been wondering this myself. At age 49, I stepped out of the rat race and started a business doing it for myself. I don't work that hard at it as I don't have a need for the big W2 I had in the past. Our house and cars are paid for and we are reshuffling some assets around for revenue stream.

Our Expenses I figure around $7K per month including.
Health Insurance: 1500 month
Property taxes: 450/mo
Electric/Gas/Sewer/Water/Trash 600/mo
Food/eating 800 month
Insurance (Life $166, Property $100, Cars $250) 516
Cell phone/cable modem/netflix/amazon 195
Property maint and Pool(done by myself): 300/mo
Gas and car upkeep: $500/mo
Vacations (amortized) $600/mo

I haven't included big ticket house items like HVAC which we will need in the new few years and car replacements, although I would love to keep our 05 Yukon XL and 06 Lexus GS DD's forever as we are happy with them.

The only wild card is my 14 year old daughters college education. We have about $120K stuffed away for that right now and it could eclipse $200K for undergrad, so I will still work until we know what that looks like.

I don't think there is a one size fits all answer. Just in the scope of this board there is a huge range of individual's available assets, needs, spending habits, etc. I think the one constant to get along in retirement is to always live below your means. Spend less, much less if you can, than what you have coming in. As they say, if you are in a hole, stop digging. Retirement is no place to be in the hole. Try to be ready for a catastrophe- we just had to replace both AC systems to the tune of $18,000. Stuff like that, or a new roof, $12,000.

Read through all this but it seem that it is affordable to retire in CA. Those numbers aren't sky high and they are absolutely doable here. Our numbers look pretty close only without kids and the eating out expenses. This is what I don't understand why people always say that they can't afford to retire here and have to move to other affordable places. I know there isn't a one size fits all solution, but once housing is taken care of, then expenses are similar compared to other parts of the country